The formula
Calculations run in your browser. Displayed values are rounded, while intermediate calculations keep their full precision.
What this estimate assumes
- This calculator models South Korea's jeonse/wolse lease system, which has no real equivalent in the U.S. — there is no U.S. law that mathematically converts a fixed monthly rent into an equivalent lump-sum deposit the way Korean law does. All amounts are Korean won (KRW), not a currency-neutral unit like this site's other calculators.
- The 'Legal cap' preset applies South Korea's Housing Lease Protection Act Article 7-2 and its Enforcement Decree Article 9: the conversion rate may not exceed the lower of 10% a year or the Bank of Korea base rate plus 2 percentage points. At the Bank of Korea's base rate of 2.75% (set July 16, 2026), that cap is 4.75% a year as of this writing — confirm the current Bank of Korea base rate before relying on this figure, since it changes with each Monetary Policy Board decision.
- That legal cap only has binding force when a tenant exercises their statutory renewal right or when a deposit is converted to monthly rent mid-lease; it does not apply to a brand-new lease with a new tenant, where market conversion rates commonly run higher.
- The 'Market typical' preset (6%) is a reference figure based on Korea Real Estate Board (한국부동산원) statistics for recently signed leases (a national average of 6.2%–6.6% from Dec. 2024 to Dec. 2025), not a legal figure — it varies by region, property type and timing.
- Brokerage fees, building management fees and other lease costs are excluded.
A quick reality check
₩100 million deposit, ₩500,000 monthly rent, at the legal cap
At the 4.75% legal cap, the converted jeonse-equivalent deposit is about ₩226.3 million.
₩50 million deposit, ₩700,000 monthly rent, at a typical market rate
At a 6% market-typical rate, the converted jeonse-equivalent deposit is ₩190 million.
Common questions
Is there a U.S. equivalent to Korea's jeonse conversion rate?
No. U.S. leases don't have a comparable legal mechanism for converting a fixed monthly rent into an equivalent lump-sum deposit. This calculator applies Korean law and is meant for people renting, investing in, or researching Korean real estate.
Does the legal cap apply to the lease I'm about to sign?
Only if you're renewing under your statutory renewal right or converting deposit to rent mid-lease. A brand-new lease with a new tenant is not bound by the cap, and market conversion rates there are commonly higher.
Why does the legal cap change over time?
It's defined as the lower of 10% or the Bank of Korea base rate plus 2 percentage points, so it moves whenever the Bank of Korea's Monetary Policy Board changes the base rate.